Analysis of new car incentives this month

Car showroom

Target Price: This month’s Analysis of new car incentives

We are seeing signs of the industry gearing up for a full resumption of normal trading.

Since emerging from lockdown, many dealers have taken time to get back up and running and, without the usual pressure for sales from the manufacturers, have increased per-unit profitability by taking full advantage of some buyer’s pent up demand, selling from stock and switching people into used cars.

But all this is set to change as industry expectations for the all-important September registration plate period increase. It is this lead in to the final quarter of the year that will determine how successful he post-Corona Virus recovery has been for many car makers and dealers.

Our latest research data reveals month-on-month increases in the average cash Target Price discount across 11 of our 14 vehicle segments. Only Executive Cars, MPVs and Large SUVs bucked this trend with an average decline of 3.2%, in relative terms.

This means that consumers can currently expect to haggle a typical 8.1%, or £3066 per car, showroom saving.

The finance-based support from the car makers has remained stable at typical 4.2% PCP APR, and the average finance deposit contribution of £1534 per car means that buyers can take advantage of a total average Target Price saving of £4600 when buying a new car.

More than 10% of cars within our Target Price inventory can be purchased using 0% APR PCP deal, with both Mazda and Suzuki offering an interest-free PCP option across their entire model range.

Nissan dealers are currently the most generous when offering an average cash Target Price discount across a model range at 13.3%, followed by Seat and Mitsubishi at 12.3% and 11.8% respectively.

Mini has recorded the highest month-on-month increase in the average cash Target Price saving, with the typically achievable showroom discount across the model range up by 2.6% to 7.8%.

For further insight from whatcar.com’s unique website data, please contact insights@haymarket.com